SEALOL HINDUSTAN LIMITED Vs. UNION OF INDIA

JUDGEMENT

(1.) The petitioners manufacture mechanical seals which can be used only in Centrifugal pumps and compressors. For this purpose they have a collaboration agreement with M/s. E.G. & G. Sealol Incorporated of the United States of America. The petitioners import various parts which are required for the manufacture of such mechanical seals. These parts are :

(2.) Prior to August 1976 the parts imported by the petitioners were classified under tariff item 72(3) of the Customs Tariff under the Indian Customs Tariff Act, 1934. As from 2nd August, 1976 the new Customs Tariff Act of 1975 came into operation. Under this Act the Import Tariff schedule was revised to bring it in line with the Brussels Tariff Nomenclature.

(3.) After coming into force of this Act the above components imported by the petitioners have been classified under various tariff entries as set out in paragraph 11 of the petition. The petitioners, in this petition pray for a declaration that those parts which are imported by them should be declared as falling under Tariff Item 84.10(1) or 84.11(1) as the case may be; that the orders and Bills of Entry as set out in the prayer should be set aside and a refund of excess duty as summarised at Exhibit 'SP' amounting to Rs. 36,77,455.56 be granted. The refund asked for covers the period 1st of July, 1975 to 11th September, 1981. The petitioners however, do not press for any refund prior to 2nd August, 1976 when the new Act came into force.